Fiscal Year-End Close Information & Dates

Transcription

1 120 Theory, Suite 200 Irvine, California FROM TO Marc Guerra Interim Assistant Vice Chancellor & Controller Accounting & Fiscal Services All Campus Departments DATE May 16, Fiscal Year-End Close Information & Dates These instructions are intended to assist in coordinating the needs of academic and administrative departments with the requirements of the University, the Accounting & Fiscal Services Department, and other service departments. We are required to comply with deadlines established by both the Office of the President and UCI. To better assist departments in meeting the various deadlines during the fiscal closing process, the section under Fiscal Closing Deadlines has been organized by deadline dates. If your dean or other administrative officer has established deadlines prior to the ones listed, please observe them. All departments should utilize the Kuali Financial System to record financial activity as appropriate. This year s fiscal year-end closing process will follow the same general timeline as the previous year s schedule, with minor changes to certain cutoffs. For the campus at large, closing procedures will be completed in the June Fiscal Period (Period 12) in KFS. Recommended Actions In order to close in a timely manner, it is important that departments adhere to the cutoff dates outlined in this letter. In addition to meeting the cutoff dates, it is recommended that the following actions be taken in each campus department: Continue to promptly reconcile your monthly ledgers. Thoroughly review the May (Period 11) ledgers and make all necessary corrections/adjustments. Ensure that all transactions will be processed in time to Last Updated on July 3, 2018

2 appear on the June (Period 12) ledgers. Departments cannot process adjustments after the Period 12 ledger closes. Review FAUs provided to campus recharge units for recurring charges to ensure accuracy and to minimize corrections. Please note that material transactions that were not recorded by the Period 12 cutoff and are related to business must be accrued as soon as possible. As a general rule, accruals should not be recorded for Contracts & Grants funds. To determine whether a transaction is material for reporting purposes, UCI has established the following criteria: o The goods and/or services are received in , but the expense is not reflected on the 6/30 campus ledgers (expense accrual). o Services are performed in , but not billed (revenue accrual). o Revenue is received in for services to be conducted in (revenue deferral). o Payment for goods/services in with expected benefit in (expense deferral). o The transaction value is greater than or equal to UCI s accrual/deferral threshold. For the close, the threshold is $10,000. There are two exceptions to this rule: For capitalized equipment, anything greater than or equal to $5,000 should be accrued. For plant/capitalized construction costs, anything greater than or equal to $35,000 should be accrued. Important Information The Accounting Office will be offering two Fiscal Close Workshop sessions on May 22 and 23. In addition, we will be offering a workshop session directed toward Auxiliary and Sales & Service Enterprises on May 30. This session will cover the same topics as the May 22 and 23 workshops, with additional topics unique to Auxiliary and Sales & Service Enterprises. More information is available on the UCLC website at Registration through UCLC is required for all workshops Fiscal Year-End Close Information and Dates Page 2 of 14

3 Please carefully review the closing dates in this letter. Questions can be directed to your department financial manager or the KFS Helpdesk During the final weeks of Period 12, KFS users will receive daily Action List reminders to help ensure a timely closing process. Decision Support will be updated six nights per week, Sunday through Friday, during Fiscal Close (from July 8 through July 22). The June Final ledgers are anticipated to be available by the first weekend of August. Special attention should be devoted to the review of transactions processed in July for potential accruals. Please contact the KFS Helpdesk (kfs@uci.edu) as soon as possible if a material transaction should be evaluated for accrual consideration. Information about Fiscal Close can be found on the Accounting & Fiscal Services website: accounting.uci.edu/fiscalclose/. Funds Carried Forward Unrestricted Funds Unrestricted funds can only be carried forward if they are in a positive status. Funds will be carried forward and re-appropriated in July, Fiscal Year , in each departmental account. Campus departments will not be required to take any action during fiscal closing to carry forward these funds, with the exception of awards that may require carry forward approval by the sponsoring unit. All unrestricted funds are required to be in a solvent condition at fiscal year-end. Restricted Funds Specific or Restricted Fund (Donations, Grants, Special State Appropriations, Government Contracts, etc.) balances may or may not be carried forward into the new fiscal year, based on certain factors: a. Whether the period of availability, as stipulated by the funding source, extends into the new fiscal year, and b. Whether the terms under which the funds were given permit carryforward. Gift Fund - accounts without current activities and with small balances should be reviewed by departments and closed out Fiscal Year-End Close Information and Dates Page 3 of 14

4 Endowment Fund balances will be carried forward and re-appropriated in July, Fiscal Year Funds are required to be in a solvent condition at fiscal year-end. To reduce the administrative burden of reviewing and carrying forward small balances, we ask that departments expend these balances with legitimate charges before year-end. The remainder of this letter covers specific fiscal close deadlines. Please contact the KFS Helpdesk (kfs@uci.edu) if there are circumstances or conditions that have not been addressed in this letter. Thank you for your attention to UCI s fiscal close deadlines a successful close requires the participation of the entire campus. Regards, Marc Guerra Interim Assistant Vice Chancellor & Controller Accounting & Fiscal Services Fiscal Year-End Close Information and Dates Page 4 of 14

5 Fiscal Year-End Close IMPORTANT FISCAL CLOSE DEADLINES AND DATES May 17 KFS Requisition and PO Fiscal Year appears in drop-down box on KFS Requisition and PO. (Use for Recurring PO or Contracts that start after July 1). Contact Procurement Services for questions ( ). May 18 Interlocation Transfer of Funds Departments transferring funds to the Office of the President or another campus must submit their request to the Budget Office by May 18. This will be the FINAL input for the fiscal year. June 1 High Value or Contract Requisitions Last recommended day to submit a High Value or Contract Requisition to ensure Procurement Services has sufficient processing and lead time to post in FY 2017/18. Please call Procurement Services for time-sensitive transactions ( ). June 1 POA for High Value, Contract, or Recurring Payment POs Last recommended day to request Procurement Services to process a POA for High Value, Contract, or Recurring Payment POs. Comply with this deadline to ensure Procurement Services has sufficient processing and lead time to post in FY 2017/18. Please call Procurement Services for time-sensitive transactions ( ). June 1 UCIBuy Catalog Requisitions in KFS Automatic Purchase Order (APO) and/or High Value PO Last recommended day to submit a High Value or Contract Requisition to ensure Procurement Services has sufficient processing and lead time to post in FY 2017/18. Please call Procurement Services for time-sensitive transactions ( ) Fiscal Year-End Close Information and Dates Page 5 of 14

6 June 19 PALCard Purchases The last recommended day for PALCard purchases to ensure the vendor/bank submits the charge by June 30. Please contact PALCard Administration for questions. June 20 Payroll Time Reporting Bi-weekly Payroll ending 06/16/18 (B1) Last day to enter leave usage for period 6/3 6/16 on the biweekly IDTC roster. June 20 Payroll Employee Database (EDB) Deadline Monthly Payroll ending 06/30/18 (MO) All new hires, reclassifications, promotions, rate changes, and funding changes for automatically paid monthly employees must be entered into the EDB by this date to be reflected on the 06/29/18 check date. June 21 Payroll First Deadline for: Payroll Expense Transfers Late/Reduce Pay Additional Pay adjustment transactions In order to be reflected in June payroll ledger, these transactions should be prepared and scheduled for processing no later than June 21, using Pay Cycle "B1" and Pay Period End Date "061618" in the EDAT submenu within PPS (Payroll/Personnel System). June 22 Travel and Event Management (TEM) All Forms TEM transactions that are SUBMITTED, SCANNED, and APPROVED by Travel Accounting by 4 p.m. on June 22 will be recorded as expenses for PLEASE NOTE: If you miss the June 22 deadline, DO NOT hold the documents. Submit your TEM transaction and send your documents and receipts to scanning immediately. The Accounting office will make every effort to post them to the June ledger. DO NOT submit New Year (FY ) transactions until July 1. June 22 Disbursement Vouchers (DV) Disbursement Vouchers that are SUBMITTED, SCANNED, and APPROVED by Accounting by 4 p.m. on June 22 will be recorded as expenses for PLEASE NOTE: If you miss the June 22 deadline, DO NOT hold the documents. Submit your documents and receipts to scanning immediately. The Accounting Fiscal Year-End Close Information and Dates Page 6 of 14

7 office will make every effort to post them to the June ledger. DO NOT submit New Year (FY ) transactions until July 1. June 22 Fulfilled POs or RPPOs with Remaining Balances Last day for appropriate Procurement Services Contract Manager/Contract Analyst to close fulfilled (no remaining payments, goods or services) POs or RPOs with remaining balances to release funds. Comply with this deadline to ensure Procurement Services has sufficient processing and lead time to post in FY 2017/18. Please call Procurement Services for time-sensitive transactions ( ). June 22 Payroll Time Reporting Monthly Payroll ending 06/30/18 (MO) Last day to enter May 2018 leave time usage for monthly employees using the Leave Roster section of the Time Collection (IDTC) screen. June 25 Payroll Second Deadline for: Payroll Expense Transfers Late/Reduce Pay Additional Pay adjustment transactions (including leave time reporting) In order to be reflected in June payroll ledger, these transactions should be prepared and scheduled for processing no later than June 25, using Pay Cycle "MO" and Pay Period End Date "063018" in the EDAT submenu within PPS (Payroll/Personnel System). June 28 TouchNet Marketplace Credit Card Transactions Last day for TouchNet Marketplace transactions to be included in the fiscal year. TouchNet transactions post to the ledger the day after they are received, therefore any payments received on June 29 or later will post to the new fiscal year. For more information, please contact the Payment Card Services group at June 28 In-Store PALCard Purchases Last day for in-store PALCard purchases to ensure vendor/bank submits the charge by June 30. Please contact PALCard Administration for questions. June 29 Low Value POs & Encumbrances Fiscal Year-End Close Information and Dates Page 7 of 14

8 Last day to approve and encumber funds for Low Value POs for FY 2017/18. Last day to finalize any POAs for Low Value POs or APOs (through UCIBuy). Last day for Contract Managers to close fulfilled (no remaining payments, goods, or services) Low Value POs with remaining balance to release encumbered funds. Contact Procurement Services for questions. June 29 Deposits to Campus Central Cashier To ensure the recording of deposits for , campus departments and subcashiering stations must submit their deposit information through the Campus Online Deposit System (C.O.D.) by 1 p.m. on June 29. Actual deposits must be physically received by the Central Cashier by 1 p.m. on June 29. Deposits with discrepancies will be rejected online, so please be sure to check your deposits for accuracy before submitting and delivering to the Central Cashier to avoid a possible delay in processing. Central Cashier will close at 1 p.m. on June 29 to ensure the processing of all deposits received on that date. June 29 Intercampus Recharges Any department that plans to recharge another campus for services or materials supplied in should transmit the information to the Accounting Office by 4 p.m. on June 29. These will be processed against the departmental account. Intercampus recharges received AFTER 4 p.m. June 29 will be recorded in the year. Please Note: Accruals cannot be recorded on recharges to other campuses. June 29 Last Day to Encumber Funds Funds must be encumbered using a PO finalized by June 29 for the encumbrance to be included in the fiscal year. High Value and Recurring Payment Requisitions require additional lead time see the Purchasing fiscal close guidelines for details. June 29 Last Day to Clear Department PO Encumbrances Fiscal Year-End Close Information and Dates Page 8 of 14

9 Departments should clear out any old or invalid leftover encumbrances before year end. Purchase Orders (PO) that are open with future expected payments or credits after July 1 should remain open. Only those without expected future activity should be closed or voided by June 29. To Close a PO, Fiscal Officers and Contract Managers can go in to the PO and select the Close Order button to close and release all remaining encumbrances. To Void a PO, the Contract Manager can go in to the PO and select the Void Order button, when there has been no prior activity on the PO. To review open encumbrances on ledgers, use the Encumbrance Report from UCI Decision Support, for EX (External Encumbrance) entries (the Reference Document Number is the PO Number). For questions regarding encumbrances, please kfs@uci.edu June 29 PDP Cutoff The PDP cut-off date for June 2018 business is June 29. This affects all units that send files to PDP (e.g., CE, Library, SBS, Medical Center). July 1 PALCard Purchases PALCard purchases made on or after this date affect FY 2018/19 funds and will not appear in KFS until after FY 2017/18- Period 12 Closes. Please contact PALCard Administration for questions. PALCard@uci.edu July 2 Payroll Third Deadline for: Payroll Expense Transfers Late/Reduce Pay Additional Pay adjustment transactions June 2018 Z payments for the School of Medicine In order to be reflected in June payroll ledger, these transactions should be prepared and scheduled for processing no later than July 2, using Pay Cycle XX and Pay Period End Date "060118" in the EDAT submenu within the Payroll/Personnel System (PPS). July 3 Time Reporting Deadline for Bi-Weekly Payroll Ending 06/30/18 (B2) Last day to enter leave usage for period 6/17 6/30 on the biweekly IDTC roster Fiscal Year-End Close Information and Dates Page 9 of 14

10 July 3 PALCard Reconciliation (PCDO) Last FY 2017/18 PCDO Created date. Please contact PALCard Administration for questions. PALCard@uci.edu July 3 Inventories Units submitting year-end inventories will take physical inventories (units and dollars) of their STOCK IN TRADE and reserve supplies at close of business June 30. Central Accounting will prepare KFS documents to record the change in inventory. Detailed instructions will be issued at a later date. July 3 University Invoices (Sundry Debtor Bills) Bills for services rendered through June 30 must be submitted online through CBSO and forwarded to Financial Services no later than July 3 so that accounts can be credited. University Invoices received AFTER July 3 or that have a July invoice date will be recorded in the fiscal year. July 5 Deadline to Close Travel Authorizations & Release Encumbrance for FY All Travel Authorization Close (TAC) documents (to release encumbrances for FY ) may be submitted by July 5 to clear entries for the Fiscal Year. Travel Reimbursements for FY trips have a much earlier deadline, to report and expense out a trip. Travel Authorization Close documents may be manually submitted by Arrangers going in to the Travel Authorization and selecting the close TA button for any department-encumbered, non-cash advance TAs. To review open encumbrances on ledgers, use the Encumbrance Report from UCI Decision Support, for IE (Internal Encumbrance) entries (the Reference Document Number is the Trip Number). July 5 Payroll Fourth Deadline for: Payroll Expense Transfers Last Chance for: Late/Reduce Pay Additional Pay adjustment transactions In order to be reflected in June payroll ledger, these transactions should be prepared and scheduled for processing no later than July 5, using Pay Cycle "B2" and Pay Period End Date "063018" in the EDAT submenu within PPS. This is the absolute last Pay Cycle to be used for Late/Reduce Pay and Additional Pay Fiscal Year-End Close Information and Dates Page 10 of 14

11 Adjustment to be included in business. Any payroll that is not paid out by the July 5 B2 cycle deadline will not be accrued into the fiscal year. July 6 Payroll Expense Distribution Ledgers (PPP5302) in EDL June 2018 Activity. Online viewing and download will be available on July 6 from EDL. July 6 Recharges, Including Internal Billing (IB), Service Billing (SB), and Distribution of Income/Expense (DI) Documents All recharges, including IB, SB, and DI documents, must be submitted by July 6 to be included in departmental accounts. Any recharges on DI documents that have not been completely approved by July 6 will be disapproved. All submitted IB documents will be auto-approved on July 6. Saved IB, SB, and DI documents that have not been submitted by July 6 will also be cancelled. July 6 Feeder System Cut-Off The Feeder System cut-off date for June 2018 business is July 6. This is mandatory to allow departments three business days to make adjustments in their accounts before July 11, Any recharges uploaded after July 6 will be posted to KFS Fiscal Period 01 (July) in the new fiscal year on July 19. July 6 Payroll Expense Distribution Ledgers (PPP5302) in EDL Online viewing and download will be available on July 6 from the Electronic Document Library (EDL). July 9 Payroll Final Deadline for: Payroll Expense Transfers In order to be reflected in June/July payroll ledger, these transactions should be prepared and scheduled for processing no later than July 9, using Pay Cycle XX and Pay Period End Date "063018" in the EDAT submenu in PPS. Reminder: Only Payroll Expense Transfers encoded with a Pay Period End Date of 06/30/18 or earlier will be processed into the June/July payroll ledger. DO NOT process any other transactions on this cycle (LX, RX, AP, FT). THEY WILL BE DELETED Fiscal Year-End Close Information and Dates Page 11 of 14

12 This is the absolute last Pay Cycle to be used for expense transfers to be included in prior year business. Ledgers will be updated with these payroll transactions on July 10. July 9 Invoices from Vendors Charges under Specific Purchase Orders Invoices should be submitted to the Accounting office by 4 p.m. on July 9. The Accounting Office will process those invoices and the expenses will be recorded in the June Preliminary General Ledger. If you miss the July 9 deadline, DO NOT hold the invoices. Send your invoice to the Accounting Office immediately. Accounting will make every effort to post them to the June ledger. July 9 Invoice processing deadline for FY Fiscal Year invoices must be received in Accounts Payable no later than July 9. Any invoices for services or dates that are not processed by July 9 must be accrued by the department if the expense is greater than $10,000 (see page 2 for capitalized equipment and plant/capitalized construction costs exceptions). July 10 Payroll Expense Distribution Ledgers (PPP5302) in EDL Online viewing and download will be available on July 10 from EDL. July 11 PALCard Reconciliation (PCDO) Last day to approve PCDOs. All Unapproved PCDOs will auto-send after 8 p.m., regardless of date created. Please contact PALCard Administration for questions. PALCard@uci.edu July 11 General Error Corrections (GECs) Last day to process GEC for June (Period 12) preliminary ledger. (GEC will remain open during the Period 12 interim ledger.) July Accruals, Budget Alignment, and Final Error Corrections Regular department closing activities should be finished by July 11. The period from July should be used for final necessary accruals, final budget alignments, and final error corrections Fiscal Year-End Close Information and Dates Page 12 of 14

13 EXPENSE ACCRUALS ARE TO BE FOR $10,000 OR MORE PER INVOICE, TRAVEL VOUCHER, RECHARGE, ETC. (See page 2 for capitalized equipment and plant/capitalized construction costs exceptions.) July Accruals All accruals, except Payroll, are required to be entered using the YEDA document. Goods and services received by June 30, 2018, and not processed/approved by AP should be accrued. Disbursement Vouchers and Invoices should be accrued, if applicable to the current fiscal year. Departments can accrue expenses using the YEDA document from July 12 to July 18. July AP Deferrals (Deferred Expense) The cutoff for all Accounts Payable deferrals is July 18, at 4pm. As a general rule, expenses that are deferred on invoices paid in June should be reflected on the July ledger. July Accrual of Travel, Event and Other Expenses Normally Processed in TEM Expenses including travel incurred in fiscal year for airfare (including round trip costs), meals, lodging, foreign per diem, etc. normally processed in TEM, should be accrued. Departments can accrue expenses using the YEDA document from July 12 to July 18. For trips beginning July 1 or later, it is not permissible to accrue any travel costs, even if tickets are purchased in June. This is considered to be an advance rather than an expense for financial reporting purposes. July 18 Income/Recharge Budget Alignment UCI requires all KFS control accounts (UCnnnnn) to end the fiscal year with an income variance of zero. Budgeted income on KFS control accounts must be aligned with actual income by KFS Chart, Account, and Object. There is no requirement that non-control accounts (Operating Accounts) in KFS end the fiscal year with an income variance of zero, but if departments want to see income budgets equal actual income on FY reports, then entries to align budgeted income must be recorded. Whether income variances are zero or not on non-control accounts, the budget carryforward process will post any budget surpluses to the unallocated budget object code (0008) by Account/Sub-Account in FY Period BB. Income budget alignment entries on control accounts Fiscal Year-End Close Information and Dates Page 13 of 14

14 (and on non-control accounts, if desired) must be complete by July 18. See the Guide to Budgeting for Income for more information. July 18 ***FOR AUXILIARY AND SERVICE ENTERPRISES ONLY*** All auxiliary and service enterprises are required to accrue income that has not been recorded on the June Preliminary Ledger for sales and services performed in the fiscal year ending June 30 using the YEDA, or AV document. Also, expenses for goods and services received prior to July 1, 2018, must be accrued. PLEASE NOTE: Interdepartmental recharge income and expense will not be allowed to be accrued unless the offsetting department agrees to the accrual. Contact Srey Tung at or if you have any questions. July 18 Final Deadline for Campus Departments to Record All Activity in Period 12 Departments must close the fiscal year in a solvent condition. All KFS documents must be in Final status to be included in the period. At the end of the day on July 18, any GEC, BA, BAT, YEDA, AV, or DI documents for Period 12 and Period 1 of 2018/2019 that are not in Final status will be canceled by the system. Documents requiring central office approval should be submitted by 4 PM on July 18. It is recommended that any fiscal year 2018/19 documents be initiated after July 18 to avoid unintended system cancelation. If a transaction in a canceled document should be recorded in Period 1, it will have to be re-entered or copied. Early August Final Reports will be Available Period 13 will be used by Central Accounting to record FYE entries required by OP and UCI policy. It will close on August 1. Final reports will be available for departments (including Period 13) in Decision Support shortly thereafter. August 7 July (Period 1) Ledger The July 2018 period will close on Tuesday, August Fiscal Year-End Close Information and Dates Page 14 of 14